Neo Solar Power Corporation, a producer of solar cells in Taiwan, has announced plans to expand its 2010 capacity to 600MW from 240MW and thus raise production by 150%. The company estimates a shipment of approximately 400 to 500MW in 2010, a 100~150% increase from 2009’s predicted 200MW.
The NT$2.7 billion dollars (approximately US$83.6 million) expected as the total capital expenditure for the 360MW expansion will be sustained by the company’s internal capital. Neo Solar will be able to rely on a strong cash position of NT$3.5 billion and roughly NT$700 million to be delivered from operating activities.
The expansion plan is devised to answer year-on-year solar demand growth, which peaks at over 50% in 2010 with demands from major markets in Japan, China, Germany and the States.
Also expected are a supply surplus of poly-silicon and lowered wafer costs, given new poly-silicon ramp-up from manufacturers such as Wacker and Hemlock. These lower material costs leads Neo Solar to believe global demand in 2009 will continue in 2010, providing assistance to the average selling price that will help stabilise its gross margin.
With the total shipment for 2009 previously estimated at 200MW, conversion efficiency and production yield have caused a rise in output from 210MW at the beginning of the year to a current 240MW. Come 2010’s capacity expansion, Neo Solar’s total capacity will extend past 600MW.
Upon completion of equipment installation of its new FAB 2 at Hsinchu Science Park, total installed capacity of NSP will reach 780MW.
Neo Solar hopes to become a global Tier 1 solar manufacturer.